What does it signify if a seller authorizes an agent to sell their property?

When a seller authorizes an agent to sell their property, it establishes a principal-agent relationship. In this context, the seller is the principal who owns the property and has the authority to sell it, while the agent acts on behalf of the seller to facilitate the sale. This relationship is foundational in real estate and auctioneering, as it legally binds the agent to act in the best interest of the seller, adhering to fiduciary duties such as loyalty, disclosure, and accountability.

Understanding this relationship is crucial because it defines the scope of the agent's authority, the obligations they owe to the seller, and the expectations for both parties involved in the transaction. The agent is tasked with marketing the property, negotiating offers, and executing contracts, all while representing the seller's interests. This fundamental dynamic is a cornerstone of real estate transactions and is critical for effective agency operations.